Peloton sells connected fitness equipment, such as bikes, treadmills, and rowers, bundled with subscriptions to instructor-led workout content. Peloton generates revenue through two segments: Connected Fitness Products and Subscriptions. The hardware segment involves selling equipment to consumers and commercial clients, while the Subscriptions segment provides recurring revenue from monthly fees for live and on-demand classes. Peloton uses hardware sales to acquire subscribers who then generate high-margin revenue. The hardware lineup features the consumer-focused Cross Training Series and the commercial-focused Pro Series. Both lines include touchscreens to stream classes led by Peloton instructors. Peloton also operates a Commercial Business Unit through its Precor brand, which provides cardio and strength equipment to gyms, hotels, and corporate offices globally. Strategic growth initiatives include expanding into new hardware categories like connected strength training, scaling the commercial business, and integrating AI personalization through Peloton IQ for form correction and workout plans. Peloton is also expanding into broader wellness areas, including mental well-being, recovery, and sleep, while licensing its content to third-party platforms. The company sells its products through its e-commerce platform, physical micro stores, and third-party retailers like Amazon and Dick's Sporting Goods.